The effect of customer relationship management in the banking sector in Kenya
Today, many banks realize the importance of customer relationship management and its potential to help them acquire new customers retain existing ones and maximize their Iifetime value. Customer relationship management is crucial in modern business world due to changing patterns of government regulation, technological innovations, competition, the service quality movement, pressures to improve productivity, internationalization and globalization etc. The study sought to determine the effect of Customer Relationship Management within the banking sector in Kenya. The study adopted a descriptive survey design to investigate the effect of customer relationship in banking sector in Kenya. The target population of study comprised of all the 44 commercial banks operating in Kenya. The main data collection instrument was a questionnaire. The data collected using the questionnaire was analysed by descriptive statistics. The study found that the bank has different marketing mix for targeting customers and would use customer information to develop a new market; the bank provides variety of service items and information. On customer Response, the study found that the bank uses phone calls, e-mails and personnel visits to communicate with customers; the bank rapidly responds to customer problems, suggestions and complaints; the bank would initiatively inquire about banks services. Further on customer Knowledge, the study found that the bank is knowledgeable about how to obtain main customers; the bank understands main customers' service requirements; the bank has fruitful capabilities to obtain new customers. The study recommends that such dimensions should always be put in consideration in the customer relationship management process for the banks to meet their short term, medium and long term market obligations.